What I'm Thinking About

iTunes Pricing and Schultz’s Law.

Am I the only one who thinks that the recording industry will be shooting themselves in the foot if they manage to persuade Apple to adopt variable pricing on iTunes? The sweet thing about the $0.99/track pricing is that it is cheap enough that people won’t think twice about buying 3-4 tracks, just as people don’t think too much about spending $1000/year on Starbucks lattes because they are only spending a few bucks at a time.

Push the price up over a $1 a track and I think you cross a threshold with people. It’s more than a buck a track now. It’s more than $5 for a few songs, It’s more than $10 for an album.